Best answer: Are extended car warranties worth it for used cars?

Is it worth getting an extended warranty on a used car?

Buyers who plan to keep their car well beyond the expiry of the manufacturer’s warranty may find extendedwarranty cover appealing. This is particularly the case if the car purchased is known to be expensive to repair. Used car buyers can benefit from purchasing an extended warranty.

Why extended warranties are a waste of money?

Well, the worst thing about an extended warranty is that it is overpriced. In fact, about half of what you pay goes to the salesperson’s commission. So a lot of the money you hand over doesn’t even go toward the purpose of the warranty, which is to pay for things that go wrong with the car over the contract period.

Why you should never buy an extended warranty?

While it may sound like a good idea in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.

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What is covered under used car warranty?

Your car’s warranty – whether it’s a manufacturer’s, dealer, extended or used-car warranty – typically covers the car and its accessories in relation to safety, reliability and roadworthiness; it doesn’t cover cosmetic damage or normal wear and tear.

What does Dave Ramsey say about extended warranties?

The fact is, extended warranties are overpriced. That’s the reason people sell them, because they make a bundle on them in commissions,” says a money expert and radio talk show host, Dave Ramsey. “I don’t recommend buying extended warranties, ever.

What items should you buy extended warranties on cars?

10 Purchases You Should Always Get an Extended Warranty On

  • To Buy or Not to Buy. 1/11. …
  • Cars and Trucks. 2/11. …
  • RVs and Boats. 3/11. …
  • Cell Phones. 4/11. …
  • Refrigerators. 5/11. …
  • HVAC Systems. 6/11. …
  • Washers & Dryers. 7/11. …
  • Television Sets. 8/11.

Are car warranties a waste of money?

Extended warranties are rarely worth your money. Products don’t break on their own, and when they do, the price of repairs is usually lower than what you’d spend on an extended warranty. … But take a moment to ask yourself why a company would offer you an extended warranty. The answer is: because they’re profitable.

What is a good price for an extended car warranty?

An extended car warranty costs $1,500 on average. The cost of an extended car warranty can be anywhere from $1,000 to $5,000 depending on several factors, including the condition of the car, the car’s mileage, and the amount of coverage included in the warranty.

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What are two reasons not to buy an extended warranty?

6 Reasons Why You Should Never Purchase an Extended Warranty

  • The Manufacturer’s Warranty Is Often Sufficient. …
  • Extended Warranties Are Not Always Effective. …
  • Consumer Products Depreciate in Value. …
  • The Necessity of Repairs Is Rare. …
  • Warranties Are Not Cost-Effective. …
  • Credit Cards Can Offer Better Protection.

Who has the best extended car warranty?

12 Best Extended Car Warranty Companies

Best Extended Car Warranty Motor1 Award Cost Rating
#1: Endurance Best Coverage 4.5
#2: CarShield Best Value 5.0
#3: CARCHEX Best for Used Cars 4.5
#4: Protect My Car Best Maintenance Benefits 4.5

What is the legal requirement for warranty on a used car?

A warranty is not a legal requirement for a used car, and it’s fairly common on very cheap used cars (less than a couple of thousand pounds or so) to be sold without any warranty at all. Unlike your statutory rights, a dealer can also offer you a discount in return for waiving the warranty.

What is the law on used car warranty?

Secondhand vehicles

For a second hand motor vehicle the Motor Dealers and Repairers Act 2013 provides a statutory warranty of 3 months or 5,000km from the date of sale (whichever occurs first). … Of course the dealer would have no responsibility if the vehicle was abused.

How long is the warranty on a used car?

Once you look over what’s covered, along with other details like the expiration date/mileage, you can reach out to the manufacturer to verify it’s accurate. A car manufacturer’s warranty often covers a vehicle’s first three years or 36,000 miles, though powertrain warranties may last longer.

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